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Miscellaneous Programs and Equations
17–3
File name 33s-English-Manual-040130-Publication(Edition 2).doc Page : 388
Printed Date : 2004/1/30 Size : 13.7 x 21.2 cm
SOLVE instructions:
1. If your first TVM calculation is to solve for interest rate, I, press 1
e
I.
2. Press
º
d
. If necessary, press
×
or
Ø
to scroll through the
equation list until you come to the TVM equation.
3. Do one of the following five operations:
a. Press
Û
N to calculate the number of compounding periods.
b. Press
Û
I to calculate periodic interest.
For monthly payments, the result returned for
I is the monthly interest rate,
i; press 12
¸
to see the annual interest rate.
c. Press
Û
B to calculate initial balance of a loan or savings account.
d. Press
Û
P to calculate periodic payment.
e. Press
Û
F to calculate future value or balance of a loan
.
4. Key in the values of the four known variables as they are prompted for; press
¥
after each value.
5. When you press the last
¥
, the value of the unknown variable is calculated
and displayed.
6. To calculate a new variable, or recalculate the same variable using different
data, go back to step 2.
SOLVE works effectively in this application without initial guesses.
Variables Used:
N
The number of compounding periods.
I The periodic interest rate as a percentage. (For example, if the
annual interest rate is 15% and there are 12 payments per year,
the
periodic interest rate, i, is 15
÷
12=1.25%.)
B The initial balance of loan or savings account.
P The periodic payment.
F The future value of a savings account or balance of a loan.
Example:
Part 1.
You are financing the purchase of a car with a 3–year (36–month) loan
at 10.5% annual interest compounded monthly. The purchase price of the car is
$7,250. Your down payment is $1,500.